Housebuilding giant reports strong start to spring selling season

Taylor Wimpey, the housebuilding giant, has reported a strong start to the new selling season.

The company said it has made a "good start" to 2024 as the housing market stabilises but it reported another dip in sales.

It held firm on its financial guidance for the year in an update ahead of its annual general meeting, with recent trading matching its expectations.

Taylor Wimpey, which has sites across Scotland, told shareholders it has seen "encouraging" traffic to its website and "good levels" of visits to its site.

It reported a net private sales for the year to April 21 of 0.73 per outlet per week, dipping slightly from 0.75 over the same period a year earlier.

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Jennie Daly, chief executive of the High Wycombe-based company, said: "We have made a good start to 2024 with the spring selling season progressing as expected.

"While we are mindful of ongoing market uncertainty and affordability challenges, it is pleasing to see continued market stability supported by good mortgage availability and sustained customer confidence."

Ms Daly added: "Looking ahead, we are confident that we have a strong and resilient business supported by a high-quality, well-located landbank.

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"We remain focused on driving value and investing in the long-term sustainability of the business, and we remain on track to deliver our guidance for 2024 while ensuring we are positioned for growth from 2025, assuming supportive market conditions."

Shane Carberry, industrials analyst at Goodbody, said: "We believe this is an encouraging update from Taylor Wimpey.

"It is positive to see the sales rate remaining resilient in recent weeks and we can take comfort in the full-year guidance remaining unchanged."

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Andy Murphy, director of financials and industrials at Edison Group, said: “Taylor Wimpey’s latest trading statement reflects a promising start to 2024, with the Spring selling season progressing as anticipated despite market uncertainties and affordability concerns.

“The company has been resilient amidst challenges, with its strong customer support efforts and effective marketing strategies driving interest in its properties.”

He pointed to the slight decrease in total order value at £2,090 million, set against £2,379m, the year before, and said that Taylor Wimpey “maintains confidence in its high-quality, strategically located landbank and prudent land acquisition approach to create shareholder value”.

The company reiterated its commitment to its dividend policy and expects UK completions for 2024 to be within the range of 9,500 to 10,000 homes.

“With a clear strategy and a focus on long-term growth, Taylor Wimpey remains well-positioned to navigate market fluctuations and capitalise on future opportunities, demonstrating its ability to deliver value to stakeholders over time,” said Mr Murphy.

Oli Creasey, property research analyst at Quilter Cheviot, said the trading statement contained “very little to surprise investors, either on the up or downside”, adding that “Taylor Wimpey’s management does see green shoots emerging, remarking that the company is positioned for growth from 2025”.

He said: “While this is encouraging, we do not know what assumptions are being made about house prices and mortgage rates to support that growth.

“We expect little change to share price or expectations given these in-line results.”

Shares in the FTSE 100 firm closed up 1.25%, or 1.65p, at 133.85p.